Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
We have been asked to reexamine a previously submitted request regarding the qualification of a monthly service fee as a medical expense in light of additional information provided by the writer.
Position:
Will be eligible pursuant to 118.2(2)(o) of the Act as long as the fee is paid and is directly attributable to the cost of an eligible expense as opposed to availability of the service.
Reasons:
952130
XXXXXXXXXX D. Zion
Attention: XXXXXXXXXX
November 14, 1995
Dear Sirs:
Re: XXXXXXXXXX
This is in reply to your letter of July 27, 1995, wherein you request that we provide our comments on the qualification of a monthly service fee as a medical expense for the purposes of the medical expense tax credit in light of additional information you have provided.
Based on the information provided with your original submission, it was our view (our file #951242) that the monthly service fee in question would not qualify as an eligible medical expense because it was not directly attributable to any particular eligible medical service provided to an individual but rather was paid for the availability of such service.
In your more recent correspondence you have clarified that
XXXXXXXXXX
You are of the view therefore, that the amount paid by the customer is directly attributable to a particular medical service provided to an individual and is not in fact paid for the availability of such service.
Where a fee is paid and is directly attributable to the cost of laboratory, radiological and other diagnostic procedures or services, with necessary interpretations, for assisting in the treatment of any disability as prescribed by a medical practitioner, then the expenditures are described within subparagraph 118.2(2)(o) of the Act. In your previous submission you informed us that this
XXXXXXXXXX
Accordingly, to the extent that the fees are attributable to expenditures as described above and have been prescribed by a medical practitioner, the fees would be regarded as eligible expenditures for the purposes of the medical expense tax credit.
We trust that our comments have clarified our position.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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